Wednesday, November 23, 2011


Keybot the Quant motors along on the short side. The algo clicked off three numbers today along with the pre-scheduled number at 10 AM. The algo number hits a low at -72 indicating strong bearishness. The VIX shot up thru 32 at the opening bell so you knew a down day was on tap.  The SPX:VIX ratio fell under 35 to increase the selling pressure but the ratio keeps moving above and below unable to make a firm decision.

The utilties sector, the only sector supporting the bull case, ruptured today when UTIL lost its 50 week MA.  This has oscillated above and below as well unable to make a decision. Thus UTIL and SPX:VIX will dictate direction the remainder of the day.

If UTIL stays above the 50 week MA at 424.33, the market bulls will dodge a bullet and be able to pull the indexes back upwards. If UTIL drops under 424.33, the broad market selling will accelerate. UTIL now printing 424.53, only 20 cents above danger.  SPX:VIX ratio is 34.93, thus bear-friendly, but only by 7 cents. If the ratio stays under 35, the bears will drive the markets lower into the close.

11/30/11; 7:00 PM EST EOM =
11/29/11; 10:00 AM EST =
11/27/11; 7:00 PM EST =
11/23/11; 11:52 AM EST = -56; signal line is -27
11/23/11; 11:09 AM EST = -72; signal line is -25
11/23/11; 10:00 AM EST = -56; signal line is -23
11/23/11; 9:30 AM EST = -56; signal line is -23
11/22/11; 12:09 PM EST = -42; signal line is -21
11/22/11; 10:12 AM EST = -56; signal line is -20
11/22/11; 9:54 AM EST = -42; signal line is -19

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